The USD/CAD currency pair has dropped below its 200-day moving average (DMA), currently around 1.4030, signaling a continuation of its downtrend. The pair is now trading near a long-term ascending trend line that has been in place since 2021.
Société Générale’s foreign exchange analysts point out that while some momentum indicators suggest the bearish pressure may be easing, the overall technical outlook remains weak.
The daily MACD (Moving Average Convergence Divergence) shows positive divergence, which means the downward momentum is slowing. However, there is no clear sign yet of a strong rebound.
The 1.4030 level acts as a key short-term resistance. If USD/CAD fails to move back above this point, the pair is likely to continue falling. Analysts expect the next support targets to be around 1.3610 and 1.3570, with the previous low from last September at 1.3420 also in focus.
In summary, despite some signs of slowing bearish momentum, USD/CAD remains under pressure. Traders should watch the 1.4030 resistance closely to gauge whether the downtrend will persist.
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